OREANDA-NEWS. June 08, 2010.
1. Results of the inspection of AS “UniCredit Bank” Lithuania branch
The Board of the Bank of Lithuania was presented information on the inspection of the bank AS “UniCredit Bank” Lithuania branch. Correctness of the preparation of financial statements and reports for supervisory purposes submitted to the Bank of Lithuania, ensuring compliance with the liquidity ratio and effectiveness of the internal control system were checked. In addition, by way of selective check-up, compliance with the requirements for the data entry into the Loan Risk Database was checked, reported the press-centre of Bank of Lithuania.

The Credit Institutions Supervision Department was instructed to inform the bank of the Republic of Latvia AS „UniCredit Bank“ and the supervisory authority of the Republic of Latvia about the results of the inspection of AS „UniCredit Bank“ Lithuania branch.

Supervision of branches established in the Republic of Lithuania by foreign banks licensed in the European Union (EU) Member States is conducted by the supervisory authority of the EU Member State within whose jurisdiction that foreign bank is; however this does not limit the right of Lithuania’s supervisory authority to conduct their supervision in observance of the provisions of the EU directives and the legal acts of the Republic of Lithuania.

The Bank of Lithuania is responsible for the supervision of compliance with the liquidity ratio, monitors deposit concentration in these branches, analyses their financial indicators, developments of assets and liabilities, income and costs, internal control mechanisms. In order to ensure that the information about the operation of these branches in Lithuania that was submitted to the Bank of Lithuania is correct, inspections are performed during which the above-mentioned information is checked, and on the request of a supervisory authority of a EU Member State other information may also be examined.

2. Permission for AB Medicinos bankas to repay a subordinated loan before maturity
The Board of the Bank of Lithuania issued permission for AB Medicinos bankas to repay before maturity a subordinated loan of EUR 10,000,000 (LTL 34,528,000) received from Saulius Karosas according to the subordinated loan agreement of 9 June 2006.

The funds to be repaid according to the agreement will be directed by the bank for forming a special purpose reserve for covering losses, thus enhancing the bank’s capital base.